New Graphics Card: Radeon RX 7600 XT

Advanced Micro Devices (AMD) is ramping up its gaming portfolio with the debut of the Radeon RX 7600 XT graphics card. With a robust 16GB of high-speed GDDR6 memory, this cutting-edge graphics card is engineered to fortify AMD’s competitive position against NVIDIA.

Utilizing AMD FidelityFX Super Resolution and AMD HYPR-RX with AMD Fluid Motion Frames, users of AMD’s latest graphics card can seamlessly enjoy up to 1.9 times faster gaming and ray tracing performance compared to the NVIDIA GeForce RTX 2060.

The Radeon RX 7600 XT graphics card is slated to hit the market commencing Jan 24, 2024, and will be available from prominent AMD board partners, including Acer, ASRock, ASUS, Gigabyte, PowerColor, Sapphire and XFX.

Expanding Desktop Portfolio

Furthermore, AMD is broadening its desktop portfolio with the introduction of the new Ryzen 8000G series desktop processors for the AM5 platform. This includes the Ryzen 7 8700G, hailed as having the world’s most powerful built-in graphics, along with featuring up to eight cores and 16 threads.

AMD is also introducing Ryzen AI to unleash additional AI capabilities for desktop consumers. Additionally, the company is rolling out the new Ryzen 5000 processors, which encompasses the new Ryzen 7 5700X3D, leveraging potent 3D V-Cache technology.

Advanced Micro Devices, Inc. Price and Consensus

AMD’s Prospects Remain Bright

AMD’s expanding portfolio is driving its prospects. It recently launched the Ryzen 8040 series processor with Ryzen AI and Instinct MI300 Series data center AI accelerators. The company also introduced the ROCm 6 open software stack with significant optimizations and new features supporting Large Language Models.

The latest Ryzen 8040 series mobile processors, when combined with Ryzen AI NPU on-die, extend AMD’s leadership position in the AI-supported PC markets.

Systems leveraging Ryzen 8040 series processors will be globally available from leading original equipment manufacturers, including Acer, Asus, Dell Technologies, HP, Lenovo and Razer, beginning in 2024.

AMD is expanding its data center footprint with the new Instinct MI300X accelerator. It combines CDNA 3 architecture and Zen 4 CPUs to deliver robust performance for HPC and AI workloads. Partners like Microsoft, Oracle and Dell are already using the accelerators in their systems.

Microsoft is using AMD’s Instinct accelerator portfolio in its new Azure ND MI300x v5 virtual machine series, optimized for AI workloads.

AMD, which currently carries a Zacks Rank #3 (Hold), expects fourth-quarter 2023 revenues to be $6.1 billion (+/-$300 million), which indicates year-over-year growth of 9% and 5% sequentially at the mid-point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMD’s Prospects Remain Bright

AMD expects to witness year-over-year growth in the Data Center and Client segments by double-digit percentage. Sequentially, the Data Center segment’s revenues are expected to grow on a double-digit percentage, while Client is expected to increase.

The Zacks Consensus Estimate for fourth-quarter 2023 revenues is pegged at $6.11 billion, indicating 9.2% year-over-year growth. The consensus estimate for earnings is pegged at 77 cents per share, suggesting 11.59% year-over-year growth.

AMD expects fourth-quarter revenues to be $6.1 billion (+/-$300 million), indicating year-over-year growth of 9% and 5% sequentially at the mid-point.